Claiming Social Security at age 62 often comes with warnings of reduced monthly benefits and long-term financial drawbacks. Yet, for many Americans, it may be the right choice — offering flexibility, freedom, and early access to a steady income stream.
Age 62 has long been the most popular time to begin collecting Social Security. It’s the earliest age at which benefits become available, and for some, the idea of receiving a monthly paycheck sooner rather than later is appealing — even if it means a permanent reduction. While waiting until full retirement age (FRA), typically 67 for those born in 1960 or later, will maximize your benefit, there are solid reasons to consider an earlier start.
When Social Security is just a bonus — not a necessity
Claiming Social Security at 62 comes with a clear trade-off: your monthly benefits are reduced by up to 30% if your FRA is 67. This permanent reduction leads many to believe waiting is the wiser financial move. However, that advice doesn’t fit every situation.
According to the Federal Reserve, as of 2022, the median retirement savings for Americans aged 65 to 74 stood at just $200,000 — a modest amount for what could be a retirement spanning decades. If you’re in this group and heavily reliant on Social Security to cover basic living expenses, delaying benefits may indeed be the better option.
But there are many retirees who have saved wisely, invested consistently, and accumulated substantial nest eggs. For these individuals, Social Security isn’t the main source of retirement income — it’s extra cash. In such cases, claiming early can allow retirees to tap into those benefits when they may be more physically able to enjoy them.
For example, you might want to travel or check off experiences from your bucket list in your early 60s, but hesitate to draw from your savings. If Social Security isn’t essential to your monthly budget, claiming at 62 could help you fund those dreams — without touching your investments.
Focus on lifestyle, not just the numbers
While it’s easy to focus solely on the reduction in benefits, the broader picture matters. If you’re financially secure, in good health, and eager to enjoy your retirement sooner, then claiming Social Security at 62 could actually enhance your quality of life.
Ultimately, there’s no one-size-fits-all answer. The best decision depends on your personal savings, goals, and health. But don’t dismiss claiming early just because it’s often labeled as the “wrong” move. For many, it’s the strategy that allows them to live more fully — and with fewer financial worries — at a time when every moment count